Revenue: As of FY2026 Q3, the actual value is USD 44.23 M, missing the estimate of USD 50 M.

EPS: As of FY2026 Q3, the actual value is USD -1.16.

EBIT: As of FY2026 Q3, the actual value is USD -3.932 M.

Q3 Fiscal 2026 Financial Highlights (Three Months Ended June 30, 2026 vs. 2025)

Operational Metrics

• Income (Loss) from Operations: - $3.9 million in Q3 2026, a -202.6% decrease compared to $3.8 million in Q3 2025.
• Adjusted Income (Loss) from Operations: - $0.6 million in Q3 2026, a -115.8% decrease compared to $3.8 million in Q3 2025.
• Net Income (Loss): - $16.8 million in Q3 2026, a -5700.0% decrease compared to $0.3 million in Q3 2025.
• Adjusted EBITDA: $3.4 million in Q3 2026, a -58.0% decrease compared to $8.1 million in Q3 2025.
• Adjusted EBITDA Margin on Revenue: 7.6% in Q3 2026, a -21.6% decrease compared to 9.7% in Q3 2025.
• Total Operating Costs: $48,157 thousand in Q3 2026, down from $79,588 thousand in Q3 2025.
• Interest Expense, Net: $3,082 thousand in Q3 2026, down from $3,540 thousand in Q3 2025.
• Provision for Income Taxes (Benefit): $9,773 thousand in Q3 2026, compared to - $74 thousand in Q3 2025.

Cash Flow

• Cash provided by Operating Activities: $4.2 million in Q3 2026, a -56.3% decrease compared to $9.6 million in Q3 2025.
• Free Cash Flow: $4.2 million in Q3 2026, a -56.3% decrease compared to $9.6 million in Q3 2025.

Year-to-Date Fiscal 2026 Financial Highlights (Nine Months Ended June 30, 2026 vs. 2025)

Operational Metrics

• Income (Loss) from Operations: - $2,550 thousand in the nine months ended June 30, 2026, compared to $14,506 thousand in the prior year period.
• Net Income (Loss): - $20,646 thousand in the nine months ended June 30, 2026, compared to $2,281 thousand in the prior year period.
• Total Operating Costs: $174,933 thousand in the nine months ended June 30, 2026, down from $248,831 thousand in the prior year period.
• Interest Expense, Net: $9,617 thousand in the nine months ended June 30, 2026, down from $11,549 thousand in the prior year period.
• Provision for Income Taxes (Benefit): $8,479 thousand in the nine months ended June 30, 2026, compared to $676 thousand in the prior year period.

Cash Flow

• Net Cash Provided by Operating Activities: $3,219 thousand in the nine months ended June 30, 2026, compared to $12,536 thousand in the prior year period.
• Free Cash Flow: $3,180 thousand in the nine months ended June 30, 2026, compared to $12,323 thousand in the prior year period.

Other Key Metrics

• Debt: $128.7 million as of June 30, 2026, a -2.2% decrease from $131.6 million as of September 30, 2025.
• Backlog: $408.5 million as of June 30, 2026, a -20.6% decrease from $514.3 million as of September 30, 2025.

Outlook / Guidance

DLH Holdings Corp. expects fourth-quarter revenue to be entirely from technology-powered solutions. The company anticipates maintaining Adjusted EBITDA margins at approximately the same level as the third quarter by aligning indirect costs with revenue volumes. DLH Holdings Corp. believes it is positioned for improved performance in fiscal 2027.